K and R Insurance

Kidnap and ransom insurance reimburses the costs arising when crew or a vessel are seized and held for ransom, the main marine application being Somali and Gulf of Guinea piracy hijackings. A K&R policy typically covers the ransom payment, loss or damage to ransom money in transit, and the fees of professional crisis-response consultants who manage negotiation. Cover is bought quietly because publicizing limits can raise demands; it pairs with hull war and crew personal-accident cover. Demand rose after the 2008 to 2012 Somali hijacking peak and again with Gulf of Guinea kidnap-for-ransom.